Wednesday, 22 October 2014
Last updated 13 hours ago
Sep 30 2008 | 9:26am ET
Troubled hedge fund firm Absolute Capital Management Holdings will see more investors than expected head for the door, it said today.
The Swiss-based firm, which is listed on London’s Alternative Investment Market, posted a €1.2 million loss for the first half, and said it would not recommend a dividend. The firm’s assets under management at the end of June were just US$884 million, down from US$3.25 billion a year ago, due to redemptions and poor performance as well as the demerger of its emerging markets credit division, Argo Group.
In July, AbCap Chairman Jonathan Treacher said he expected as much as €500 million in redemptions.
“While the performance of certain of our funds’ A class portfolios in the first six months has been encouraging, looking ahead, the group expects to have substantial redemptions from its funds at the end of the lock-up periods,” the firm said, due in part to the liquidation of its Absolute Activist Value Fund. It added that it would continue to monitor the viability of its other funds.
Last year, AbCap was rocked by the abrupt departure of co-founder Florian Homm and the revelation that Homm had put as much as a quarter of AbCap’s equity fund’s assets into highly-illiquid pink sheets. The firm then suspended redemptions, putting the illiquid assets into side pockets.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
Sep 30 2014 | 9:29am ET
The crisp Autumnal days of October are upon us, and so are a few of the hedge fund industry’s favorite charitable events. If you have never been to Rocktoberfest, well, you are missing out. And for a quieter evening of sipping and socializing, stop by HFC’s Wine Soiree. Read more…
Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...